Moutinho's Mark IV sues town of Trumbull

MariAn Gail Brown

Updated 11:42 pm, Wednesday, October 23, 2013

TRUMBULL -- Embattled contractor Manuel "Manny" Moutinho, whose Mark IV Construction Co. allegedly botched one town sewer project and whose dealings are the subject of an FBI probe, is suing the Town of Trumbull on another sewer contract.

Moutinho's Bridgeport-based company, which has a reputation for low-ball bidding and then jacking up prices through change orders, is suing Trumbull for breach of contract. Mark IV claims the town is responsible for breach of the covenant of good faith and fair dealing, lost profits, meddling with its work and unjust enrichment for failing to pay millions owed to the business.

The suit claims it was Trumbull, not Mark IV workers, who have delayed completion of the North Nichols sewer construction project by withholding information on subsurface conditions that could have been anticipated when Moutinho submitted its winning $24.9 million bid.

"Trumbull delayed, hindered and interfered with Mark IV's planned completion of the project causing inefficiencies that increased the cost of construction," Mark IV states in the lawsuit served Tuesday on Trumbull. Moutinho's construction company also accused the town of providing Mark IV with "Defective, inadequate and incomplete plans and specifications" for the project and for failing to process change orders in a "timely manner."

Mark IV is no stranger to litigation with Trumbull.

Trumbull and its Water Pollution Control Authority sued Mark IV in March 2011 for doing a shoddy job on its Jog Hill Road sewer project, which affected 730 residential properties. Nine months later, Trumbull's WPCA amended its lawsuit, accusing Mark IV of manipulating the bidding process by colluding with town employees so it would get the contract.

According to the complaint, Mark IV structured its offer based on information unavailable to any other bidder. That lawsuit states that company priced its work knowing that certain Trumbull municipal employees wouldn't require Mark IV to conduct tests and that they would approve change-order requests with no questions asked.

Six months after Trumbull launched its original lawsuit against Mark IV Construction, Moutinho fired back with a defamation suit against First Selectman Tim Herbst, claiming his public statements about the business were "grossly misleading" and had harmed its reputation. That lawsuit was filed weeks before the 2011 municipal election. Moutinho later withdrew the lawsuit.

Mark IV's attorney, Jared Cohane, of Hinkley Allen in Hartford, declined to discuss any specifics of the lawsuit or why the dollar amounts stated in the suit do not appear to add up. Efforts to reach Moutinho were unsuccessful. There was no answer at his business, and he did not return voicemail messages.

Democrat Martha Jankovic-Mark, who wants to oust Herbst, a Republican, as first selectman, said she had not yet seen Mark IV's lawsuit.

"So, much has been done by the Trumbull WPCA in executive session that it's hard to discern what's really going on here," Jankovic-Mark said. "What I can say is that I look forward to finding out all of the facts."

Meanwhile, Herbst blasted Moutinho.

"This lawsuit is indicative of the fact that Mr. Moutinho doesn't care about the people of Trumbull. He doesn't care about the hardship he's caused to so many people," Herbst said. "His lawsuit is reflective of his attitude -- believing the taxpayers of Trumbull are his personal ATM machine, and his failure to accept the fact that there's new management in this town and we won't give him an open checkbook.

"Mr. Moutinho is used to public officials in towns kissing his ring," Herbst said. "And I don't play that game."